Background - Vietnam Economic Situation

Chapter 1
Introduction
1.1. Background - Vietnam Economic Situation
In the past few years, from 1988 up to the present, Vietnam's economy has seen a
rapid transformation from a centralized command to a market economy. To catch up with the
pace of development in the Asia-Pacific region, the Vietnamese Government have launched
an ambitious development program to the year 2000. During a relatively short period of time,
some success has been achieved in the economy: the annual economic development of the
country reached an average of 7.8% between 1991 and 1994 and is expected to increase to
9.5-10% in 1996 and 10-11% to the year 2005 (see Vietnam Investment Review, 7-13
August, 1995); one-digit inflation has been recorded in the years 1992-1993 and the rate of
inflation has been maintained at about 10-14% during the last two years; production has
increased; the socio-economic situation has visibly improved and the economy has become
more flexible and more dynamic. In 1988, The Law on Foreign Investment was promulgated,
followed by The Law on Foreign Technology Transfer into Vietnam in 1989. These two laws
enabled foreign businesses to enter Vietnam in the form of joint-venture and foreign direct
investment (FDI). The number of foreign investors who come to Vietnam seeking business
opportunities increases from year to year. According to the Saigon Times magazine, 31 Aug.
1995 (Source: State Committee of Cooperation and Investment -SCCI), 1,183 foreign
investment project licenses with a total investment capital of US$ 16,008,091,692 were
granted. According to the Ministry of Planning and Investment, in 1995, foreign investment in
Vietnam increased by 30% from the previous years (The foreign Investment Story of 1995,
Vietnam Economics news No 52, Dec. 29/ 1995- Jan. 4/ 1996, p.20). The foreign investors
come with a new way to do business and create a competitive environment. The private
sector is growing from year to year both in size and number and is starting to challenge the
state-owned organizations. Smuggling of goods remains a formidable obstacle to the local
businesspersons. All these factors encourage a new way to do business, and a new way to
manage an organization.
Evaluating the achievements of Economic Renovation in Vietnam, in his article "Ten
Years of Economic Renovation in the Eyes of Foreigners" in an Economy and Forecast
Review in the Ministry of Planning and Investment, Thai Van Long stated that Vietnam is

lacking competent and flexible business managers capable of steering an economic
development of the country in the transformation period.
In August 1995, Vietnam became a member of ASEAN and the need for management
experts who can take part in ASEAN' activities has become an urgent issue of the government
level. Besides, in the process of joining into regional and global economic development, the
need for business managers who can deal with competition locally and internationally
becomes a vital problem for all Vietnamese companies, both state-owned and private alike
(see Businessmen Face Tough Competition, Vietnam Investment Review, 31 July-6 August,
1995 p.5).
Virtually every facet of the country is being affected. Education, especially
management training, is becoming a national priority which constitutes a motivator and a
fundamental condition to ensure the implementation of socio-economic goals, building and
defending the country. Vietnam is currently facing a critical shortage of entrepreneurs.
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Likewise, managers familiar with up-to-date technologies are needed for development in
almost all sectors of the economy. There are particular deficiencies in the areas of economics
and business management (see Education and Human Resources Sector Analysis: Synthesis
Report, October 1992).
All these explain the reasons why the Southeast Asian Ministers of Education
Organization (SEAMEO) pays its attention to Management Training in Vietnam.
1.2. Demand and Supply of Management Training
The training and recycling capable managers is an important issue of any country, any
economic system, and therefore, is a regular duty. For Vietnam today, this problem becomes
more actual as more foreign companies open their offices and factories in Vietnam, and as
local companies become more market oriented. The need for a new generation of managers
who can meet new requirements of economic development is becoming an urgent problem.
On the other hand, the switch from the former rigid and bureaucratic mechanism of
government administration to a more responsive, flexible mechanism in the market-oriented
economy has required government officials to be retrained in order to serve their country
better.

Vietnam therefore urgently needs to train new managers as well as re-train, recycle
existing ones in order to meet the new requirements of the country’s economic development.
The need on this issue of management training is one of the hottest issues in the country.
According to Mr. Le Vinh, General Secretary of the Association of Economists of Vietnam, the
managers that need to be re-trained can be divided into three groups:
• The first group should consist of people who have been trained in command economics;
• The second group should be made up of managers who have had hands-on technical
experience but who don’t have much management knowledge;
• The third group would be people who have not had any training whatsoever but they have
just picked up what knowledge they could along the way.
There were some common agreements on the huge demand for management training.
The Vietnam Ministry of Education and Training held a seminar on MBA training from 6 to 8
July, 1995 in Vung Tau. Institutions that are considered good in the field (with both training
curriculum and books available) are the SAV program, the HCM City University of Technology,
Hanoi National University of Economics, and the HCM City Open University.
At undergraduate level, management training programs in Vietnam are still somehow
affected by the old theories of economics. In recent years, state institutions have been
changing their programs to adapt to new requirements of the society. Courses provided are
mostly in the basic theories of capitalist economies. Students study management theories
passively or theoretically. The result is that graduates’ capability are not competent to the
requirements from business community.
1.3. Problem Statement
Up to now, the huge demand on management training is agreed commonly, but there
are only few researches on the actual demand in management skills were carried out in
Vietnam. Some other researches also tried to find out appropriate courses and retraining,
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recycling forms that should be provided for existing managers in state, private economic
sectors and in the public administration sectors.
In order to meet the training needs in the future, it is very important to have current,
accurate information on exactly what kind of managerial training is needed by domestic and

foreign businesses and Vietnamese government agencies. Then, training modules can be
custom-designed and targeted to fit the needs of different industries and branches. By this
way, the effective use of scarce resources can be maximized and the most critical needs can
be addressed first.
1.4. Objectives of the study.
This study will identify the various training needs for mid-level managers in Vietnam. It
will define the topical nature of courses required, the most appropriate training styles, and,
somehow, the course format which is most likely to be accepted. The focus of the research
will be on key industries of the country (e.g. Petroleum, Processing industries, joint-ventures).
In addition, government agencies will be included in the research, to assess official needs for
upgrading management skills in government.
First stage - Preliminary study:
Current management training programs in Vietnam.
Second stage
• Estimates by trainers, executives of needs at middle management level during the next
three to four years.
• Assessment by mid-level managers on skills and knowledge needed to be upgraded
• Estimates on the level of support private companies are willing to provide for
employees who participate in training programs.
• Pricing and promotion strategy
1.5. Methodology
The research will be conducted in Ho Chi Minh City, and Hanoi, Vietnam, the nation's
two most developed cities in terms of trading, transportation, and communication. They have
been the most attractive spots for foreign investment in Vietnam due to better infrastructure
and more active trading and processing industries.
Preliminary research will be conducted in the third term break (August, 1995) with the
following activities in HCM City and Hanoi:
Secondary data collection of research and studies of the local and foreign institutes
and centers, publications of media concerning management training need.
Interviews with some officials of these centers for more information on their curriculum

and their opinions on the current needs of management skills for mid-level managers at
Vietnamese agencies, domestic industries, and foreign firms in Vietnam.
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In the second stage, the market research will require in-depth interviews with about 20
representatives from key industries officials who are familiar with the management needs in
the government. This pilot will allow us to define the needs of industries and government in
more detail before further research for a feasibility study. Respondents will be chosen among
senior managers, government officials in Hanoi, Hai Phong, Ho Chi Minh City, Dong Nai, Vung
Tau. Those senior managers are the ones who have substantial experience operating in
Vietnam and therefore are very familiar with the problems of recruiting and retraining,
recycling qualified mid-level managers.
The study would help to determine the magnitude of demand for the training services,
as well as the level of willingness to pay for training, which kind of training companies want
and need and what the appropriate fees should be.
During the research implementation, a pilot quantitative survey was designed to give a
better understanding of the opinions of various types of local respondents and to obtain the
necessary experience for the next step of the study.
The questionnaire is then designed to reveal the most essential management skills
and the most appropriate forms of training expected by the local existing and future (MBA-
students) managers.
The respondents are chosen from senior students of some MBA programs such as
CFVG, MBA in industrial management, from attendants of the second-undergraduate diploma
at HCMC Economic University, from participants of some seminars organized by SAV and
UNESCAP in Ho Chi Minh City, Hanoi and finally from the managers of some corporations and
companies in Ho Chi Minh City and Dong Nai province.
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Chapter 2
Literature Review
2.1 Definitions of Terms
2.1.1 Skill

Skill is the transfer of knowledge or perception into action. Skill is practical knowledge
combined with ability. A skill can be improved through practice or training.
Many authors have introduced different sets of management skills according to the
types of managers under study.
Skill in general
WHETTEN & KAMARON (1980) state in their Introduction to Management Skill
Development that there are nine critical management skills that managers have to master.
There are (see Appendix 1):
1. Developing self-awareness
2. Managing Personnel Stress
3. Solving Problems Creatively
4. Establishing Supportive Communication
5. Gaining Power and Influence
6. Improving Employee Performance Through Motivation
7. Delegating and Decision Making
8. Managing Conflict
9. Conducting Effective Group Meeting
These nine Management Skills are selected based on the results of an extensive
Survey of literature as well as on their own study of over 400 practicing managers in a variety
of public and private organizations.
They select some critical characteristics of the skills that they consider in more detail.
The criteria for choosing are:
• Management skills which contain a combination of personal (e.g. stress management) and
interpersonal (e.g. conflict resolution) skills, since both are critical prerequisites for
effective management.
• Focus on proven characteristics of high- performing managers.
• Only characteristics that are trainable behavioral components are assessed. Topics like
leadership are not included because, in their mind, they involve too broad a range of
behaviors.
Focus on "generic" management skills because they avoid highly situation techniques

that are best suited for on-the-job training.
Skills for Supervisors
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THAMHAIN (1992) studies the skills needed for engineering management. He says
that there is no single formula guaranteeing success in the management of R&D or
engineering programs. However, research shows consistently that high- performing managers
have specific skills in common.
ACHECK's list of 42 skills (see Appendix 2) that are considered crucial for doing their
jobs effectively is shown. This set of skills is organized into three categories: Leadership and
people skills, technical skills and administrative skills.
The right mixture of skills depends on the engineering task, the techniques employed,
the people assigned and the organizational structure. To be effective, engineering managers
must consider all facets of getting the job done. Their managing style must facilitate the
integration of multi-disciplinary program resources for synergistic operation. The days of
managers who get by with technical expertise alone, or with pure administrative skills, is long
gone (THAMHAIN, 1992).
Technical skills and administrative skills are widely accepted as trainable skills. If
trained, they can provide immediate and measurable results. But what about training
programs that target leadership development, information giving, or personal growth?
MARGER (1962), known as the father of criterion-referenced instruction, differentiated
between performance-based attributes and nonperformance-based attributes of the objectives
of training program: Performance-based objectives keep trainers on a goal-oriented track and
offer the promise of results. He say that the trainers should describe performance-based
objectives so that each trainer interprets those objectives the same way and so that they can
measure how close they come to achieving them.
STONEAL (1992) explains that in training for performance-based objectives, we
envision a "before" and an "after". Before, employees do not know how to do their jobs or they
make errors. What they expect after helps determine our objectives. In other words, what can
employees do after training that they could not do before?
Increasingly, organizations are asking trainers to conduct training on topics involving

"soft skills" such as time management, and personal issues such as substance abuse.
In these cases, the results or changes occur over time and can't be easily quantified.
For example, trainers may convey information that may have no immediate job application -
such as an executive's view of the state of an industry.
And for soft skills, the training may simply remind and motivate employees to do what
they already know how to do but don't always carry out. Consequently, it is difficult to measure
the acquisition of soft skills. The true test of time management, for example, is not being able
to answer questions about time management; it is being able to manage time.
Another important training topic, leadership, has to do with changing and clarifying
values. Value issues involve changes in people's perceptions, habits, and relationships. These
changes happen only gradually.
Information-giving, lifestyle-changes, interpersonal skills, emotional issues, and
personal growth require flexible training objectives, performance-based objectives and non
performance-based objectives.
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SWIERCZEK (1985) lists 57 Management skills that he groups into 8 sections: 1.
Communication, 2. Directing, 3. Problem-Solving, 4. Training, 5. Hiring, 6. Planning, 7.
Performance Review, and 8. Decision-making. (see appendix 3). The list covers non- technical
skills that are important for mid-level managers.
It can be seen that the skills selected in this list relate relatively closely to actions. The
reason for the choice is to avoid the vague nature of need (SWIERCZEK 1985).
Society and the workplace today have become increasingly complex and diverse.
Managers in organizations can play various roles according to the situation. This requires
managers to master a variety of skills. The list of skills needed for them can, therefore, be
lengthened.
Skills for Performance Management
SHNEIER, BEATTY AND BAIRD (1986) suggest a performance Management System
considered as an approach to skill identification. The system is established on this basic
notion: the job of managers is to manage the performance of their subordinates. By providing
managers with performance management perspectives, by dealing a set of sequential

activities, and by building their performance management skills, they have shown that
performance appraisal is integral to their job. The eight-step performance management cycle
is briefly described as follows (see Appendix 4):
1- Choose performance appraisal measures and standards (Theme 1). Those aspects
of job performance that have an impact on success, differentiate between successful and
unsuccessful performers and are at least partially within the control of the person being rated,
should be identified as performance measures. A job analysis and a position description are
the basis for determining performance measures. There are three possible measures: What
people achieve, What people do and What people are. In other words, they translate into
assessing results, assessing behavior, and assessing personal characteristics. A performance
could be rated something like exceptional, superior, fully successful, borderline, or
unacceptable.
2- Communicate performance expectation (Theme 2). Once appraisal measures have
been determined and performance expectations defined for each level of performance, these
performances must be communicated to those being rated.
3- Plan for performance (Theme 3). Managers help subordinate to develop strategy to
meet performance expectations and secure required resources. Action plans are necessary,
as are budgets and time schedules.
4- Monitor, assist, and control performance (Theme 4). One popular method is
"Management by wandering around" which recognizes that managers need to be away from
their desks, observing performance, comparing this to their expectations, and intervening on
the ongoing process using behavior-based language to improve performance. This is a key
part of performance management which managers conduct each day, all year long, providing
ongoing feedback while perhaps only giving a performance appraisal once a year.
5-Performance appraisal (Theme 5). Performance observations are recalled and
judgments are made, comparing what is recalled to the rating interpretation of the standard
sets of the first step. to be effective, rating person must be trained how to complete forms or
address possible errors such as "leniency' or "halo". Training programs for rating person
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should emphasize such skills as communication, coaching, planning, listening, negotiating,

observing, problem-solving and those skills-related to various phases of the performance
management style.
6- Provide performance feedback (Theme 6). This is a formal report made subsequent
to appraisal. Here, superiors provide a rational for their evaluation and allow rated people to
participate in the discussion. The most useful feedback contains facts about behavior and not
interference or conclusion. Feedback should also be specific and should not overemphasize
the negative.
7- Using performance results for decision-making (Theme 7). Subsequent to final rating
and performance review sessions, various decisions can be made, based on the appraisal
results. Decisions related to promotion, demotion, or termination; to allocation of monetary and
other types of incentives and awards; and to a job assignment are examples. To ensure
success, the results of the appraisal process must be used to affect people's jobs, careers and
rewards.
8- Developing performance (Theme 8). This is the final step in the ongoing
performance management cycle. The supervisor, individual, and organization each have
responsibilities to develop and improve performance. The organization might provide funds for
furthering formal education or offer in-house training and self-assessment. The supervisor
might agree to coach a subordinate more frequently or provide an opportunity to enhance job
responsibilities. The individual might plan to read current technical information or learn a new
skill, etc.
Executive skills
SMITH (1992) focuses on searching skills for executives pointing out the importance of
finding out what skills executives need to lead their organizations. This question is basic to
succession planning and executive development. Many approaches are possible but the
search for executive skills should consider several problems.
Size of organizations impacts more or less the required skills of corresponding
managers. In dealing with a small population such as the executive of a company, it is
tempting to use a generic sets of skills. But there is some debate over the extent to which the
executive's requirements are general or situational. Complicating the task further, executives
often have trouble articulating what they do that makes them successful.

In order to convince the executives that the skills found are necessary and applicable
to their own situation, the researcher must demonstrate that the skill set is rooted in the
organization. It is not simply a matter of identifying the skills.
Increasingly sophisticated technology will demand greater skills and training. Future
technology will entail tasks that require judgment, diagnosis, and inference. Consequently,
many skilled workers will be needed for entry-level jobs. COHEN (1991) presents some skill
emphases required for employees and managers in 1990. (See table 2.1).
Prominent characteristics of skill emphasis are the process of learning in skill
development and multi-cultural and global cooperation in today business. The pledged market
economy of Vietnam cannot stray from this trend.
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GEBELEIN (1989) suggests a profile of managers who find themselves influencing
fellow employees over whom they have no direct job responsibility. He points out that the
managers find themselves in three primary roles: initiator, expert, and facilitator.
Table 2.1: Relative skill emphasis of the 1990s
Skill Area Employees Managers
Managing change and
ambiguity
adaptability versatility
Teamwork interpersonal collaboration
Thinking creativity innovation
Learning learn-how developing others
Empowerment initiative courage
Personal effectiveness self-management and
dignity
courage and integrity
Business practice honesty ethics
Future focus mission or purpose vision
Diversity culture tolerance global citizenship
The "initiator" can be responsible for a specific job and he then must initiate the issue

with his subordinates and get into a position of influence with the subordinates.
The "expert" is often contacted by the subordinates for their specialized knowledge.
The expert role can be seductive; pontificating on the basis of one's vast experience and
valuable expertise is a heady business.
The "facilitator" is charged with helping the subordinates to solve their own problems.
He may help the subordinates diagnose the problem and may teach the subordinates how to
facilitate problem-solving among employees.
GEBELEIN introduces twenty skills that he considers most critical to the success of
managers. (See table 2.2).
Table 2.2: Manager's Skill Profile
Personal - Adaptability
- Trust and integrity
- Result
- Service orientation
Interpersonal - Relationship building
- Facilitating skills
- Managing conflicts
- Ability to give feedback
Problem-solving - Diagnosing
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- Decision making
- Business knowledge
- Technical knowledge
Communication - Speaking and informing
- Listening
Administrative - Priority and time management
- Project management
Influence - Leadership
- Influencing
- Organizational savvy

- Coaching and advising
Source: GEBELEIN, (Training and Development, Mach 1989)
The skills, which reflect the essential people-oriented nature, cluster around six areas:
influence, administration, communication, problem-solving, interpersonal relations, and
personal factors.
1- Influence. Managers must know how to initiate action and mobilize others to achieve
results. They have to be comfortable standing in front and getting others to follow them
(Leadership). They have to build their credibility, visibility, and involvement with business
issues. They must be able to build a network of people in the organization to support and
promote ideas and projects (Influencing). They are able to help themselves to be more
successful. They must be easily accessible and ready to use a tailored approach in coaching
(Coaching and advising). They have to understand politically how to make things happen in
the organizations, using whatever formal and informal channels to build a net work of support
(Organizational savvy).
2-Administrative. Most managers have busy schedules, balancing commitments to a
variety people and departments. Establishing priority and managing time are an essential part
of the job. Managers often work with project teams or lead the projects themselves. They
should manage the situation, whether it is an hour-long conversation or a three-month project.
3- Communication. Managers must be able to speak effectively and make
presentations one-on-one or in groups. The skills of informing go hand-in-hand with those of
influencing. Conversely, they must be able to draw information when listening and
communicate that they have absorbed what has been said.
4- Problem-solving. Managers generally have some knowledge or expertise that others
in the organization need. Their aid would be more effective when they have a realistic
understanding of the subordinates' needs. (Technical expertise). A common problem with
managers is their lack of business know-how and an appreciation of today business needs
and overall operations (Business knowledge). They are expected to help people understand
what is going on or simply to provide a solution or several alternatives after identifying a
problem (Diagnosing). They must be able to make sound decisions on a timely basis. they
often face the dilemma of whether and when to make a decision or to continue gathering

information. They have to decide when they or their subordinates should call the shots
(Decision-making).
5- Interpersonal. Manager's roles involve teaching others how to solve their own
problems, helping them understand new processes and procedures and preparing them to
take over those responsibilities (Facilitating skills). They have to establish positive, sustained
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relationship within their company as well as with their subordinates in an active manner, rather
than waiting for subordinates to seek human resource assistance (Relationship building). The
success of managers is partly because due to their ability to gather feedback from their
subordinates who have used their services before, asking about the effectiveness of their
services and how they could be useful again. Similarly, subordinates need feedback on a
problem after manager has investigated it. Feedback must be respectful, as specific as
possible, and focus on solving problems, not on fixing blame (Feedback). Giving feedback
goes hand-in-hand with the manager's skill at managing conflict. Constructive solutions can be
reached if the manager maintains positive relationships and allows others to save "face".
6- Personal. Managers must be seen as people who are interested in helping their
subordinates, who will listen to them and who will provide them with resources and assistance
that they need to solve their problems (Service orientation). Many managers are responsible
for productivity and profitability. That's why they focus on bottom line results (Result
orientation). A manager should be trusted by the subordinates in his honesty and commitment
to solve their problem while maintaining the organizational ethics and values of the
organization. (Trust and integrity). Besides, they have to be adaptive to many variables. Often
they are spearheading organizational change while juggling numerous priorities, where the
key to success is to stay cool in the midst of complex problems and political situations.
2.1.2. Need
Need and want: The first step in any training needs analysis is to differentiate
between training wants and training needs.
NOWACK (1991) discriminates these two concepts as follows:
- A true training need exists when specific job tasks or behaviors are not important and
an employee's proficiency in them is low.

A training want may arise when specific job tasks or behaviors are not important and
an employee's proficiency in them is low.
Training need assessment aims at uncovering an employee's true training needs and
weeding out training wants. Employees often want training in specific areas that are irrelevant
to their job or inconsistent with organizational objectives.
Four Definitions of Needs:
BRINKERHOFF (1986) extracts four definitions of need from STUFFLEBEAM's study
(STUFFLEBEAM, 1977) and indicates that different organization contexts and situations will
call for different approaches of needs, and very often, any situation will benefit from a multiple
needs analysis perspective. The four definitions are as follows:
1- Discrepancy: This is defined difference between an ideal normative, or expected
level of performance, and an actual level of performance. Use of this definition allows for
measurable, precise, and specific need identification, but use of discrepancy definition
requires measurability and previously established expectation level.
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2- Democratic: A "democratic" need, what most people prefer, select. or otherwise
"vote" for, is determined by majority rule. Democratic need definition can confuse wants with
needs. Nevertheless, this definition builds consensus.
3- Diagnostic: Diagnostic needs are defined through research and casual analysis.
When A contribute to the achievement of B, then A is needed for B. This definition can help
discover true needs. Furthermore, it introduces the concept of meet and unmet needs. For
example we cannot completely delete stress while working. The need is, then, to maintain the
current low stress level. This definition allows "strength" analysis and avoids the trap of need
analysis that searches only for deficits.
4- Analytic: Analytic needs are discovered by intuition, insight expert consideration, or
even enlightenment. Analytic needs lead to new level of performance and even allow
assessment to virtuosity because they are not tied by definition to previously set standards,
majority opinion, or established knowledge. A weakness of this definition is, however, its
dependence on individual (or small group) expertise.
In reality, surveys of need use the word "need" as an expression of preference and

demand and not an observable discrepancy in performance produced by lack of skill
(SWIERCZEK, 1985). But from an organization perspective, the HRD function should operate
and be guided by policy that encourage use of all needs definition, and does not preclude the
consideration of any of them.
2.2 Training Need Assessment
2.2.1. Why to do need assessment?
Fierce competition among firms is forcing managers into increasingly complex roles.
They have the burgeoning responsibility for effectiveness and efficiency, sales and research,
profits and growth, competition, government regulations and future markets and services. The
complicated demands being placed on managers have propelled managerial needs
assessment to the forefront of organizational profiles.
Many companies allocate large sums of money to training and development. IBM, for
example, spends more than one half billion dollars per year educating and training workers.
Some money goes to train 10,000 workers for new jobs, other expenditures update technical
and scientific workers. Still other outlays prepare workers and managers for future challenges.
If IBM is to get maximum benefit for this staggering expenditure, then efforts must concentrate
on the people and the situations that benefit the most. To decide what training and
development is needed. IBM's trainers assess organizational and individual needs.
(WERTHER and DAVIS, 1981).
Need assessment diagnoses problems and future challenges to be met through
training and development. For example, changes in external environment may present an
organization with new challenges. To respond effectively, employees may need training to
deal with these changes. The comments of one training director illustrate the impact of the
external environment.
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LUDEMAN (1991), tried to measure skill for identifying training need. In addition to
improving productivity, a well developed skills assessment program can help measure and
demonstrate the training need.
There is only one concrete way to know, if the training programs are actually making a
difference pre- and post-management of the skills you are teaching, say NATHAN and

STANLEIGH (1991). They recommend comparing base line performance data with post-
training performance data to know, whether a training program really has improved employee
performance.
PARRY (1990), emphasizes the importance of providing trainers with feedback about
learners who use job skills. Without feedback it is impossible to know how to revise training
programs for maximum skill development.
Customized skills assessments meet training needs. Questions can be developed so
that each category of skills aligns with a training module. The pre-training feedback is provided
as part of the program and helps focus employees on those areas they need to improve. Six
months later, a post training assessment lets them know that their efforts to improve worked.
Knowing ahead of time, that they will receive post-training feedback increases
employees' motivation to implement their development plans and to put to work the new skills
they learned in the training program.
COHEN (1990), found a significant correlation between learning and goal setting in the
training process. Pre-training assessments make it easy for participants to see the areas in
which they need to improve and help them set appropriate goals.
LUDEMAN uses five assessment stages for identifying training need based on
customized skills. He tries to measure skill and according to the rating criteria, skill
assessments accelerate people's learning, job performance and professional development by
offering reliable feedback necessary for continuous improvement in addition to improving
productivity. A well-developed skills assessment program can help you measure and
demonstrate the worth of your human resource department.
People must know, what areas are most critical to their performance and how much, if
at all, they need to improve. Customized skills assessment is used in today's computer
technology to meet the need for performance that could be more aptly named "continuous
people's improvement".
MIRABILE (1991) emphasized a simple approach to skill assessment for training need.
Employees skills assessment can identify the logical, relevant developmental needs of a
company's work force. No single approach will work in all situations for all firms. But some kind
of skills assessments is integral to the survival of every organization.

Various developmental resources exist. Each attempts to identify employees' primary
developmental requirements in the context of their organizations. Ultimately, these resources
may be reduced to a set of tools and processes for gathering specific types of information. His
method of quickly identifying the skills requirements of jobs and people is one approach that a
savvy trainer might employ to determine its effectiveness in his own organization.
CURETON, NEWTON, and TESOLOWSKI (1986) explain that managerial need
assessments involve anticipating, researching, and evaluating the needs of management staff.
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By identifying the gaps between the present and desired situations, they help to point out the
way to improve management effectiveness. Many organizations have only recently accepted
managerial needs' assessments as valuable tools in protecting against factors that negatively
affect managers' performance.
A managerial needs assessment system can provide early warnings of these negative
factors and facilitate organizational development. The needs assessments should not be
performed as reactions to critical situations. They should not be performed either continually
or in response to identified present or potential needs and problems.
2.2.2. Developing the Method of Assessment
Answers to the following questions can provide the guidelines for managerial needs
assessment strategy. These questions can be used whether the assessment is conducted
internally or by an external consultant.
• What mechanisms are currently in place to disclose business problems?
• Does documentation exist from previous needs' assessments?
• What department within the organization will be involved in the needs' assessment
process?
• Which employees will be involved in the process?
• What budgeted amount is available to pay for costs incurred during the needs
assessment process?
• What time frame does the needs' assessments have to be conducted within?
• What is the relationship of needs' assessments to the organization's overall strategic
plans and the strategic plans of its departments?

After all these strategic questions have been answered, the information can be
translated into a formal needs' assessment plan: (1) Establish the goals and objectives of the
needs' assessments; (2) Identify specific research questions that need to be answered; (3)
Examine time and cost constraints; (4) Consider various sampling strategies; and (5) Review
data collection and analysis techniques.
Following are several methods, that can be effectively applied to a managerial
assessment.
1-Advisory Committees: Committees are established to identify training needs to
determine whether the problem might be solved via training or in a different manner, and to
prioritize the needs. The purpose is to provide advice only, not to make decisions. An
important side benefit of the committee approach is generation of enthusiasm from its
members for program participation.
2- Assessment Center: The assessment centers technique usually takes several days.
Participants engage in a variety of tasks, such as in a basket exercise, decision simulations,
case analysis, psychological tests, and group discussions. Trainers observe and assess
candidate's behavior, report their impressions in detail and combine their appraisals into a
formal report. Two kinds of conclusions typically are generated, dealing with a person's
perceived profitability and suggestions for further development.
43
3- Attitude survey: An attitude survey is an organization pool soliciting managers'
feelings about a range of organizational and work-related issues. Such a survey can have
open-ended questions with narrative responses, or structural questions with more objective
responses. Because the topics covered are usually general, the data gathered are more useful
for indicating general levels of satisfaction than for generating valid conclusions regarding
specific training needs.
4- Group Discussion: This technique involves a series of meetings with managers to
crystallize specific problems, analyze their probable causes, and identify areas in which
training could be of value. Because of its limited structure, this technique is best for primary
needs' analysis or where more rigorous analytical approaches are not feasible.
5- Interviews: Some trainers individually interview managers to obtain their perceptions

of work problems and of areas in which they feel they need training. Interviews offer high
participation involvement and capacity to tailor the training solutions more directly towards
individuals. However, the technique is quite costly in terms of the trainer's time.
6- Behavioral Observation: Direct observation of managerial behavior can be done with
work tasks of simulated exercises, and can be conducted by either the trainer or other
supervisory personnel. These methods can be time consuming, costly, and too passive.
However, it is beneficial in its direct focus on job skills and behaviors.
Once the plan is completed and the method of assessments is chosen, implementation
of the assessment can begin.
2.3 The Roles of Skill Training
2.3.1. Objectives of Training
DALTON and COSIER emphasize several traditional objectives in training programs.
They are Development of Skills, Orientation of Skills, and Socialization to Organizational
Values.
Development of skills aims at reasonable training of employees so that their skills, at
any level, can be sufficient to meet the minimum requirements of the position. If they cannot
perform this fundamental skill well, it is unlikely that they can behave extraordinarily at some
instances in innovative orientation.
But training encompasses a good deal more than providing skills. Orientation of skills
training helps employees figure out the process in the development of their career when they
handle a function in the organization. If there are no skills orientations, employees can develop
their own skills which may not fit with the process used in the future. It is difficult for them to
change their behavior or improve skills at that time.
Socialization to organizational values is another objective that may be meet by training.
Every employee, no matter how modest their current position, must be aware of these values
presumably through some form of training.
44
2.3.2. Education and Skill Training
Training is an attempt to compress experience. We want to take the knowledge and
skills that competent managers gain through trial and error over time and compress that

learning into a few months (MACHER,1984).
The first stage of training an employee receives is from school. But the responsibility
for building a quality work force does not end with the school. However, school must provide
well-designed preparation for future work force.
KEARN writes in his book Winning the Brain Race : Education's goal should be to
nurture, develop, and encourage human intelligence that produces wealth-not property, not
machines, or physical plant...The simple truth is that we can't have a world-class economy
without a world-class work force, from senior scientists to stockroom clerks. And we cannot
have world-class schools...No companies, no organizations can be better than its
employees...If wealth was once measured in gold, silver, and precious stones, it is now
measured in what we know.
People can fulfill their management development in a training session, whether it is on-
the-job learning or a formal training course. Training completes and extends skills
development after education in schools.
2.3.3. Business and Training
SMITH (1992) clarifies the close relationship between business strategy and training
orientation of organizations : Like strategic planners conducting environmental scanning,
program developers should identify trends and other factors that will shape a business's future
and examine their implications. Strategic planners look at the needs of market segments; the
program developers evaluate the needs of executives and middle managers. They imitate the
methodology of strategic planners, but also give input on a major corporate asset-the
strengths and the needs of top managers.
The size and complexity of business operations today have made training
indispensable in most companies. This trend results in a wider perspective in training. BEDI
(1991) states that no longer focusing narrowly on topics such as accountancy, salesmanship,
or production, modern training program aims at grooming all-round executives by ranging
across many fields of expertise. They focus not only on the company's current needs, but on
the challenges likely to arise as a result of growth and diversification.
2.4 Types of Training
A training course can serve as "general management objectives" or solution-oriented

objectives. General Management Training objectives usually are in human relation terms that
have direct connection to the participating managers' jobs. Solution-oriented training is aimed
at solving a problem or improving a situation on the line (SMITH, 1992).
Organizations often do not clarify clearly their objective in training. Trainers should find
out which problems the organizations are facing. The more situational the training program is,
the more possible its success would be.
45
Having set the goals for training, trainers will consider potential alternatives to carry
out training programs. THAMHAIN (1992) describes briefly 12 popular methods of training:
1. Experiential Learning- This is by far the most prevalent mode of skill development,
especially for technical managers. About 25 percent of their working time is spent in learning
on the job.
2. Observation of Management Practice- Rather than learning from your own work
experiences, you learn from the experiences and examples set by others. This method seems
to be practiced by all project leaders. Both the cost and perceived effectiveness of this type of
training are low.
3. Formal On- the- Job- Training- This includes specific training programs, often part of
a new job assignment, transfer or new hire. The training usually consists of a combination of
closely supervised work assignment, briefing sessions and some courses, seminars and
workshops.
4. Literature Reading- Although managers spend about 4 percent of work time for
reading professional books, journals and reports, they see the literature as an important
source of information and knowledge which through proper on-the-job application can be
transformed into skills.
5. Consulting- Managers see these consulting services as effective but also costly.
They find them helpful, not only for quick problem solving, but also for experiential learning
and skills building through observation and of specific techniques and practices.
6. Seminar and Workshop- These could be in-plant or public offerings. Both cost and
overall effectiveness of these training methods are considered to be medium.
7. Coaching by Upper Management-This seems to be particularly effective in the areas

of team building, communication, interpersonal skills, and leadership.
8. Professional Conferences.-The conferences are seen as vehicles for quick updates
on new management concepts.
9. Formal Course (Degree Programs)-Managers find these courses an effective way to
gain knowledge and the basis for further skills development, especially in administration,
communication, organization, planning, tracking and measuring of project activities.
10. Special Work Group-Managers perceiver these activities as highly effective for skill
development, especially in the more intricate areas of team building, communication,
leadership, and project controls.
11. Formal Courses(Continuing Education)-These courses address the special needs
of those enrolled: they are geared toward particular project management application.
12. Job Rotation -Often conducted as part of formal on-the-job training, job rotation
consists of a deliberate change of job content or area assignment.
Each training method has it own strengths and limitations for skill development. A
combination of various methods could be a good way to enhance the synergistic effect of
training. For example, classroom training in combination with reading and on-the-job
46
experiential learning can be an excellent way to build skill in any category and at any
performance level.
Vietnam has recently been opened to the free market economy. Its enterprise
managers need to be familiar with new styles of management. A basic stage for their
management development should be performance-based skills training that can lead to
measurable results. An effort should, however, be made to quantify the soft skills to an extent
as described in the performance appraisal cycle.
No matter whether an organization needs training for performance- based or non-
performance-based skills, the program should be rooted in the necessity of the organization.
Furthermore, the implementation of the program must be adaptive to the situation of the
organization in teams of human resources and physical capabilities. Such a program can thus
persuade employees to attend training not only as part of the organization's requirement but
for their own career development as well.

In Vietnam, so far, there have been few studies on Management Needs Assessment.
The Institute of Economic Research has carried out an investigation on State-owned
enterprises in Ho Chi Minh City. The investigation aimed at studying the Human Resources
profile of these enterprises, asking about the time managers have spent attending courses
related to market economy. In the Ho Chi Minh City University of Economics, there were some
surveys on how students prefer the subjects taught in the University. In Hanoi, the same
research was carried out by teaching staff of the Hanoi University of Technology, the Hanoi
University of Psychology and Humanity and the Management Training Center in the Ministry of
Planning and Investment. The results of this research show that there are still a great number
of managers who have either not attended any training courses or have only participated in a
short course. These results also show the big gaps in the knowledge and skills of the
managers who were trained and experienced in the Centrally Planned Economy. The results
of this research also reveal the low level of management and technical training of the private-
owned companies' managers.
2.5 Strategy
2.5.1 The traditional approach
Reflecting the military root of strategy, Webster's New World Dictionary defines
strategy as "the science of planning and directing military operation". The planning theme
remains an important component of most management definitions of strategy. For example,
Alfred Chandler of Harvard defined strategy as "the determination of the basic long-term goals
and objective of an enterprise, and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals." Implicit in Chandler's definition is the idea
that strategy involves a rational planning process. The organization is depicted as choosing its
goals, identifying those courses of action (or strategies) that best enable it to fulfill its goals,
and allocating resources accordingly. Similarly, JAMES B. QUINN of DARTMOUTH COLLEGE
has defined strategy as "the pattern or plan that integrates an organization's major goals,
policies, and action sequences into a cohesive whole". And finally, along the same lines,
WILLIAM F. GLUECK defined strategy as "a unified, comprehensive, and integrated plan
designed to ensure that the basic objectives of the enterprise are achieved".
2.5.2 A New Approach

47
Figure 2.1 Emergent and deliberate strategies

Intended Deliberate Realized

strategy strategy strategy
Unrealized Emergent
strategy strategy
` For all their appeal, planning-based definitions of strategy have recently evoked
criticism. As HENRY MINTZBERG of Mc. GILL UNIVERSITY has pointed out, the problem
with the planning approach is that it incorrectly assumes that an organization's strategy is
always the outcome of a rational planning process. According to MINTZBERG, definitions of
strategy that stress the role of planning ignore the fact that strategies can emerge from within
an organization without any formal plan. That is to say, even in the absence of intent,
strategies can emerge from the grassroots of an organization. MINTZBERG's point is that
strategy is more than what a company intends or plans to do; it is also what is actually does.
With this in mind, MINTZBERG has defined strategy as " a pattern in a stream of decisions or
actions," the pattern being a product of whatever intended (planned) strategies are actually
realized and of any emergent (unplanned) strategies. The scheme proposed by MINTZBERG
is illustrated in Figure 2.1.
MINTZBERG's argument is that emergent strategies are often successful and may be
more appropriate than intended strategies.
In sum, MINTZBERG's revision of the concept of strategy suggests that strategy
involves more than just planning a course of action. It also involves the recognition that
successful strategies can emerge from deep within an organization. In practice, the strategies
of most organizations are probably a combination of the intended and the emergent. The
message for management is that it needs to recognize the process of emergence and to
intervene when appropriate, killing off bad emergent strategies but nurturing potentially good
ones. To make such decisions, however, managers must be able to judge the worth of
emergent strategies. They must be able to think strategically.

Figure 2.2 Components of strategic management process
Organization's Mission
and Goals
External Internal
Analysis Analysis
Strategic Choice
Choosing Choosing
48
Organizational Conflict, Politics, Organizational
Structure and Change Controls
Matching Strategy
Structure and Controls
Feedback
2.5.3 Components of the Strategic Management Process
The components include the selection of the organizational mission and major
organizational goals (see chapter 6: SEAMEO), analysis of the components include the
selection of the organizational mission and major organizational goals (see chapter 6:
SEAMEO), analysis of the organization's external competitive environment and internal
operating environment, the selection of appropriate strategy ,designing of organizational
structure and control systems to implement the organization's chosen strategy. The task of
analyzing the organization's external and internal operating environment and then selecting
an appropriate strategy is normally refereed to as strategy formulation and is beyond the
limitations of this paper. Strategy implementation is not a scope of this research.
2.5.4 External Analysis
Organization's external competitive environment and internal operating environment,
the selection of appropriate strategy ,designing of organizational structure and control systems
to implement the organization's chosen strategy. The task of analyzing the organization's
external and internal operating environment and then selecting an appropriate strategy is
normally refereed to as strategy formulation and is beyond the limitations of this paper.
Strategy implementation is not a scope of this research.

The objective of external analysis is to identify strategic opportunities and threats in
the organization's operating environment. Two interrelated environments should be examined
in this stage:
• The business environment in which the organization operates. Analyzing this
environment involves an assessment of the competitive structure of the market and the
stage of business development.
• The macro environment. Analyzing the macro environment consists of examining
macroeconomics, social, governmental, legal, international and technological factors
that may affect the organization.
2.5.5 Internal Analysis
The next component of the strategic management process, internal analysis, serves to
pinpoint the strengths and weaknesses of the organization. Such analysis involves the
identifying the quantity and quality of resources available to the organization.
49
2.5.6 Strategic Choice
The last step of the strategy formulation task involves generating a series of strategic
alternatives, given the goals of the organization, its strengths and weaknesses, and external
opportunities and threats. The process of comparing strengths, weaknesses, opportunities
and threats is normally refereed to as a SWOT analysis. A SWOT analysis might generate a
series of strategic alternatives. To choose among alternatives, the organization has to
evaluate them against each other with respect to their ability to achieve major goals. The
objective is to select the strategy which ensures the best alignment or fit, between external
environmental opportunities and threats and the internal strengths and weaknesses of the
organization.
2.6. Price and Value
The word value is used in a variety of ways by customers and has a number of
interpretations.
Value is low price. Some buyers use the word value to refer to situations where they
simply pay a relatively low price, such as when an item is on sale. The focus here is purely on
what is given up monetarily. When a product or service is sold at specially reduced price, such

as at an inventory clearance, or when a customer receives a discount for using a coupon or
takes advantage of a one-time rebate, there is a sense of getting value.
Value is getting what I want in a product. Other buyers look at value in terms of the
benefits they receive from the item. They focus on their own subjective estimate of the
usefulness or amount of need satisfaction resulting from the purchase. Buyers typically enter
into a purchase decision process with specific choice criteria in mind. The extend to which
they perceive that a product or service they perform well on those criteria is one way in which
value is defined.
Value is the quality I get for the price I pay. An alternative approach is to view value as
perceived quality received from a purchase divided by the price paid. The buyer’s focus is
affordable quality. The best value is not the highest quality item or the lowest priced item.
Instead, quality is divided by price for each available alternative, and the one producing the
highest quotient represents the best value. Such calculations may not be very precise, as
quality is subjectively estimated in the mind of the customer.
Value is what I get for what I give. A final perspective is to approach value as a trade-
off between what a buyer is going to receive from the purchase and what a buyer is required
to give up. The best value is the one that provides the most benefit (in terms of the
customer’s desired set of attributes) for the least price. A product is evaluated on these
attributes. The result is divided by the price of the product to produce an indicator of value.
2.7. How to manage value: Focusing on the customer
Customers typically purchase many different products and services, and rarely
familiarize themselves with all the precise details of each items' design, production, delivery,
and after-sale support. Instead, their value judgments are strongly influenced by an evaluation
of basic product or service attributes, such as weight, size, or convenience. These judgments
can also be significantly affected by packaging, advertising, sales and service personnel, the
50
sales environment, brand names, price promotions, product literature, and a variety of other
vehicles under management's control.
51
Chapter 3

A profile of economic development and the need of mid – level
managers
3.1. Vietnam Economic development
In the recent five years, Vietnam has been successful in reforming its economy with
total investment of approximately US$ 18 billion, of which the State’s capital account for 43 %,
private sector account for 30 %, and the remaining from other sources, i.e. ODA (Official
Development Assistance) and FDI (Foreign Direct Investment). Vietnam has concentrated on
focal construction of infrastructure and many key industries such as energy, cement and steel,
etc. which play a decisive role in the national economy development. Total capital invested in
these fields were US$ 7.7 billion. In the mean time, investment capital of about US$ 5.4 billion
has been contributed into commerce, business, light industries and building construction
mostly by the economic private sector. Up to June 1995, foreign capital investment of US$ 4.3
billion has been poured into Vietnam focusing on hotels, offices for rent, oil and gas, light
industries, and telecommunication. However, there are few projects in the infrastructure,
construction, agriculture, forestry and fishery industries (Source: SCCI Statistics 1995).
For the National Development Plan of the next period up to the year 2000, Vietnam
wants to increase its GDP per capita from US$ 250 to US$ 500. Vietnam needs US$ 50 billion
in the next five years, and Vietnam has to do more for reaching this not-an-easy target.
According to statistic figures and estimation from the State Committee of Cooperation and
Investment (SCCI), in the next five years, Vietnam needs about US$ 10 billion of capital
investment each year.
For reaching its targets, Vietnam has to improve more of its legal infrastructure and
prepare an adequate workforce for the economic development in the near future. One of the
most serious difficulties that Vietnam currently faces is its lack of an adequate number of
competent administrators, economists, and managers who are trained in the theory and
practice of analyzing problems in market economy system.
3.2. Current status of management and mid-level managers’ capability in
Vietnam.
In the process of approaching the market economy, the Vietnam government has
accepted a policy of multi-sectors economy with 3 main economic sectors: State-, private-,

and foreign investment sector.
These three outstanding sectors play an important role in the country economic
development. A review of management status and manager’s capability in these 3 sectors will
help better assessment on management training needs in Vietnam, especially in Ho Chi Minh
City.
3.2.1. State owned sector.
52
At present, the overall investment capital of the state-owned industry has accounted
for 60% of the total investment capital of other industries. After a structural reform in 1994
-1995 for a better resource allocation and efficient operation policy as stated by the
government, the number of State-owned enterprises now is 6,400 units (compared to 12,084
in Sept. 1990) of which 800 are for public services such as electricity, water supply, post and
telecommunication, transportation. Even though state-owned enterprises has not performed
effectively in the recent years compared to enterprises in private sector, Mr. Do Quoc Sam,
the newly-promoted Minister of Ministry of Planning and Investment (PMI), still optimistically
stated that “we will reserve most priorities for newly established State-owned enterprises in
important areas, localities, and sectors in which state-owned enterprises have not been
present yet. (Source: Thoi Bao Kinh Te Saigon, Nov. 23, 1995). In order to develop and
maintain the leadership of the state-owned sector, Vietnam government has decided to
establish 18 national corporations (imitating the chaebol model in South Korea) by merging
former state-owned enterprises. However, this merge does not help new state-owned
corporations be better as the former successful enterprises now has to support other
ineffective ones in its new corporation, and there was no preparation for this merge in terms of
personnel and management.
3.2.2. Management in State-owned enterprises
Resulted from the management system of the centrally-planned economy,
management teams in the state-owned sector are not quite appropriate for new requirements
in market economy. Mr. Phan Ngoc Tuong, head of the State Administration and Personnel
Office state that only 25 - 40% of Vietnam 168,000 administrative staff meet even "standard
requirements" (Murray Hiebert, Executive Search, Far Eastern Economic Review, June 23,

1994, pp. 17-20). Reasons for the state-owned-sector-managers’ incompetence can be of the
followings:
• Management boards in the former mechanism were appointed to their positions with no
professional criteria. Actually, there were criteria for promotion, but those were vague
criteria in terms of management qualifications.
• Management boards did not have entrepreneur spirit as they are not the real owners of
enterprises, and enterprises' assets were funded by the government. Business
performance therefore were not a critical issue to management boards at the time.
• Being appointed by the government, occupation of directors and management boards
were not stable and their occupation could be changed from business management to
public management or union management. That situation made them did not consider
management as a professional career and had no investment on their management skills
and knowledge.
• There were no criteria for right assessment on state-owned enterprises' business
performance, and that restrained the development of business incentives and
management profession.
• A research by the Science and Technology State Committee in May, 1992, reveals that
there are about 30 % of state-owned enterprises’ directors lack of management
certificates and understanding of business principles in the market economy. Most of
managers in this sector are promoted from their former management position in the
centrally-planned economy. Management in market economy is totally unfamiliar to their
old way of management and most of them can not speed up to catch new requirements,
53
operations in business operations due to their old age and long time of working in the
former bureaucratic mechanism.
• Another factor that should be paid attention to is that most of current mid-level managers,
and even executive officers have engineering background and there was no systematically
management training for these managers’ occupation yet. Most of mid-level managers had
not been trained on organizational structure, management and principles of market
economy.

Management skills and knowledge, therefore, in the new market oriented situation
become an urgent need for the survival of enterprises. Managers, especially mid level
managers, in this sector must be retrained and up-dated in management skills and knowledge
for new challenges in the market economy.
3.2.3. Private sector
Since the promulgation of the Foreign Investment Law in 1986, the private economic
sectors have developed fast and played an important role in the economy. By statistic figures,
there were 11,738 directors, entrepreneurs of proprietary, unlimited, joint-stock companies by
the end of 1993, and 20,668 directors, entrepreneurs in 1994 (Source: Institute of Economic
Research). Those entrepreneurs, directors are of different backgrounds and size of business.
Some are managers of former state-owned enterprises, others are from family business with
good network relationship in trading or capital supports from their relatives abroad. However,
enterprises in the private sector are mostly of small and medium size. To the end of 1993,
there were 71% private enterprises of small size with average capital of VND 100 - 130 million
(around US$ 9,000 - 12,000). 28% of enterprises of medium size and 1% of enterprises are of
big size (more than 200 employees and VND 2 billion in capital).
Table 3.1: Number of enterprises in Hanoi and Ho Chi Minh City
Type of In the country In Hanoi In HCM City
business Numbe
r
% number % numbe
r
%
Small size 8,414 71 340 35 595 29
Medium size 3,217 28 631 64 1,411 69
Big size 103 1 9 1 48 2
Total 11,738 980 2,064
(Source: Survey of the Ministry of Planning and Investment, 1995)
3.2.4. Management in private enterprises
The economic reform policy has stimulated businessmen in the private sector to

expand their business range and business activities in a more open economy. A lot of new
enterprises has been established, and earning short-term profits became the most goal of
54